The regulator has recently published the results of a review into the market and although it is not overtly condemnatory, it is not entirely complimentary either.
Overall, the report concluded that while most customers receive suitable advice, there is scope for improvement, after research involving mystery shopping exercises, file reviews, on-site visits and consumer opinion to assess the current state of the market.
Some 59% of mystery shops resulted in suitable mortgage recommendations to customers, according to the FCA’s findings, adding that one in 33 (3%), of cases were assessed as unsuitable. “Firms failed to take reasonable steps to obtain sufficient relevant information about customers’ needs and circumstances before making recommendations,” it said.
And it is that 3% that has raised the hackles of many in our profession. Instead of being perceived as a detriment, should it not be viewed as an achievement?
To explain what I mean, allow me to give you the view from the other end of the telescope – where 97% of the advice was eminently suitable. Worthy of some praise I would wager.
To illustrate my point, the latest results (January 2015), from the UK Customer Satisfaction Index saw John Lewis top the table, with a score of 87.2%, closely followed by First Direct on 86.7% and Ocado with 85.4%. No doubt each of those organisations regarded that as a triumph and something which they will undoubtedly have exploited as very good PR.
So although I may not strictly be comparing apples with apples, due to the different techniques and criteria used to ascertain the respective figures, I can surely be allowed to interpret that FCA ‘rating’ in a positive manner?
Improving standards
Our industry has made tremendous strides since MMR, having embraced all the measures the FCA sought to achieve. Time then, that we got some credit.
From a Society of Mortgage Professionals perspective we support it wholeheartedly. Anything that ensures the best customer experience and consistently produces the correct outcomes remains the overall priority.
The same applies to our members, who are collectively on a journey from an industry to a profession. Despite some of the interpretations that have appeared in the press, I think the FCA report actually confirms that.
Certainly they do not appear to have any major concerns and the highlights appear as observations, rather than exclamations.
I agree with the comment that there is still scope for improvement. To think otherwise would be complacent. But ahead of the FCA’s wider assessment of the barriers to competition in the sector in autumn, it’s time we appreciated the endorsement of our industry that its latest paper contains.
